Welcome to the eighth edition of CEO Online

As we approach the end of this financial year, I would like to bring you up to date with your Scheme’s investment performance and anticipated end-of-year results, and:


Now’s the time to let us know your current home address, so we know where to send your annual member statement

If you have not already done so, please supply your current postal address to our administrator ComSuper so we know where to send your annual member statement and report this year.

This is particularly important if you have moved or changed jobs in the last year. You can update your address via Member Services Online (if you have an Access Number) or call a CSS Information Officer on 1300 000 277.

To ensure you receive your annual member statement this year, please supply your contact details by 31 July 2003.

CSS Photo of the Year Competition now open for snap-happy members

Last year, we received a huge number of entries for the CSS Photo of the Year competition and the winning photo by John Mungoven was featured in our Annual Report to members.

This year’s competition is now open. The theme is TAKE A CLOSER LOOK AT YOUR SUPER. The winning photo will be featured in the 2003 Annual Report to Members.

FOR MORE INFORMATION: CSS Photo of the Year competition


Your Scheme’s investment performance

As at 31 May 2003, the year-to-date fund return was 1.6%, compared to our benchmark of minus 0.1%. Overall this means CSS investments are performing better than expected and we are currently back in positive figures, albeit by only a very small amount.

The CSS is precluded by legislation from declaring a negative crediting rate, even when the investment return is below zero. As a result, the CSS operates a reserving mechanism that assists in smoothing out fluctuations in annual crediting rates. As at 31 May 2003, the CSS reserve was around minus $230,447,000 or minus 4.5% of the net assets of the fund. This is a significant improvement on the reserve of minus 8% when I last reported to you.

Until reserves are restored, the CSS continues to maintain a zero crediting rate and exit rate.

A number of members have asked how the CSS compares with other Funds. Based on our earning rate over the financial year to 30 April 2003, independent industry monitor Intech ranked the CSS 1st out of the 17 large superannuation funds it monitors.

FOR MORE INFORMATION: Investment Performance and Investment Strategy


The big question is: how will the year end?

The CSS crediting rate will not be finalised until August, but I wanted to advise members that, although returns have improved, it is virtually certain we will be announcing a zero crediting rate for the 2002/2003 year.

The CSS long-term investment strategy anticipates the likelihood of a negative return on average once every five years and the CSS remains in a strong financial position with around $4.9 billion funds under management and over 51,000 members.

How does a zero crediting rate affect you?

If you are a contributing member, any member and/ or productivity components of your benefit will not earn any interest for the last financial year. However, if you leave as an age retiree, your pension, the most significant part of your benefit, is not affected by investment performance because it is determined by your final salary, length of membership and age at exit.

If you are a deferred benefit member, any member and/ or productivity components of your benefit will not earn any interest for the last financial year. The value of your employer financed pension, calculated and payable when you claim your entitlement is also influenced by interest accruals on your member component.

I encourage members who have questions about their super in a zero crediting rate environment to seek the advice of a licensed financial planner who has experience with the CSS.

Also, if you are planning to retire or claim your deferred benefit in the next 12 months, please call a CSS Information Officer on 1300 000 277 for a detailed estimate of your benefit.


It’s time companies plug the gap in workplace health and safety reporting

In May 2003, the CSS/PSS Boards called on Australian companies to significantly improve public reporting of workplace health and safety (WH&S) risk management.

Companies that look after their WH&S improve their chance of being sound long-term performers. Our research showed that a staggering two-thirds of the top 200 companies do not publicly disclose their policy and strategy for WH&S. Without full public disclosure investors, such as the CSS, cannot adequately assess potential risks.

This action is the latest in the Scheme’s groundbreaking investment governance program, established in 2001 to safeguard the long-term interests of members by reducing risk in the companies in which we invest on your behalf.

FOR MORE INFORMATION: Workplace Health and Safety media release and the CSS governance program


Feedback from members is vital in helping us identify what works and what we need to improve

In late 2002, the CSS/PSS Boards and ComSuper commissioned Orima Research to research member satisfaction with our communications and services.

I would like to thank the 720 members, Australiawide, who participated in this study. The results are an invaluable source of information on members’ thoughts on their super and how we can continue to meet members’ information needs.

FOR MORE INFORMATION: 2002 Member Research results and share your thoughts on our communications and services at any time via Member Feedback Online.


I look forward to reporting to you again soon.